Around 10 p.m., the greenback nibbled 0.02% once morest the single currency, at 1.0409 dollars for one euro. It also advanced 0.14% once morest the pound, to 1.2093 dollars per pound.
The dollar gained some ground once morest the major currencies on Friday, following another week complicated by a slowing US economy and hopes for a less brutal US central bank (Fed).
Around 9:00 p.m. GMT, the greenback nibbled 0.02% once morest the single currency, at 1.0409 dollars for one euro. It also advanced 0.14% once morest the pound, to 1.2093 dollars per pound.
“The dollar is a little firmer, but it has not crossed any significant threshold” on the rise, noted Marc Chandler, of Bannockburn Global Forex.
“So, I would say that we are still in the consolidation phase, with a low participation” of forex traders in the market, largely due to the holiday Thursday (Thanksgiving), added the analyst.
Over the week, the “greenback”, one of the nicknames of the dollar, recorded a further decline.
The main currency’s decline since the release of the CPI consumer price indicator on November 10 is due to the impression that inflation is slowing, the economy is decelerating and the Fed is preparing to ease off. .
In addition, several indicators have recently shown that “the turnaround in the economic situation in Europe may not be as strong as expected”, commented Joe Manimbo, in a note.
Again on Friday, growth came out better than expected in the third quarter in Germany, and consumer confidence rose above expectations in Italy and France.
But in the short term, “there is still a tension between the feeling that the dollar’s peak has passed and the short-term indicators”, technical markers that encourage a rebound in the dollar, according to Marc Chandler.
The analyst is also considering a significant appreciation of the “buck”, another nickname for the American currency, next week, with the publication of the monthly report on employment in the United States on Friday.
Economists expect the US economy to have added 200,000 jobs in November.
If confirmed, this figure would show a slowdown, but would remain above the average recorded before the pandemic, i.e. around 180,000 creations per month in 2018 and 2019.
Elsewhere in the foreign exchange market, the yuan suffered from the lowering by the Chinese central bank (PBOC) of the reserve requirement ratio for banks.
Institutions will therefore have some 500 billion additional yuan (regarding 70 billion dollars), which they will not have to put in reserve at the central bank and will be able to inject into the economy.
The move aims to support activity in China in the face of the resurgence of the pandemic but increases the amount of yuan in circulation, which weakens the currency.